ASI PRELIMINARY LRP-Lamb Coverage Prices and Rates
The Federal Crop Insurance Corporation Board of Directors on March 6, 2015, approved a number of program changes to the LRP-Lamb plan of insurance including:
- A new price prediction model;
- A revised definition of “Insured Lambs”;
- Removal of the 20-week endorsement;
- Added language to prevent assignment of indemnities to businesses buying, selling, marketing, or packing lambs;
- Changes to the daily and annual sales limit; and
- Modifications to how the actual ending values are calculated.
On Sept. 28, 2006, the Federal Crop Insurance Corporation's (FCIC) board of directors approved the expansion of the LRP insurance to include a lamb pilot program as requested by ASI. On July 18, 2007, the program details were finalized by the U.S. Department of Agriculture’s Risk Management Agency (RMA) with sales beginning September 17, 2007.
ASI and its development partners, Applied Analytics, the American Sheep and Goat Center, the Livestock Marketing Information Center and Virginia Tech, worked with the FCIC and RMA for nearly three years to bring this much-needed insurance product to producers.
In June 2009, the FCIC approved modifications to the LRP-Lamb insurance product. View Modifications.
LRP-Lamb is designed to insure against unexpected declines in market prices of slaughter lambs. Sheep producers may select 13-week, 20-week, 26-week or 39-week insurance periods as well as coverage levels ranging from 80 percent to 95 percent of the expected ending value to correspond with their general feeding, production and marketing practices.
ASI has developed an online educational/training course detailing the features of LRP-Lamb. It is designed as a tool for producers and agents to utilize to learn more about the product and to offer scenarios to assist with the decision to purchase the insurance. Click on the graphic below to access the course.
LRP-LAMB ONLINE EDUCATIONAL COURSE
Risk Management Agency (RMA) LRP-Lamb Materials:
Locate an Agent
Livestock Risk Protection (LRP) Basic Policy
Specific Coverage Endorsement - Lamb - Updated March 2015
Underwriting Rules for LRP-Lamb Endorsement - Updated March 2015
Premium Calculator Worksheet - Updated March 2015
RMA Fact Sheet - Livestock Risk Protection Lamb - Revised March 2015
Frequently Asked Questions - Updated March 2015
LRP-Lamb Information from ASI:
July 18, 2007 Press Release - SHEEP INDUSTRY GETS PRICE PROTECTION PRODUCT
Map Showing States in Pilot Project
LRP-Lamb Educational Materials:
Lamb Price Risk: LRP-Lamb and Basis Change
Prepared by ASI - August 2009
Slaughter / Feeder Lamb Price Comparisons by Marketing Method
Prepared by ASI - November 2008
Q & A: Market Prices and LRP-Lamb
By David Anderson, Professor and Extension Economist
Texas AgriLife Extension Service
LRP - A new price risk management tool for lamb producers.
By Tim Petry, Livestock Economist
LRP-Lamb in Wyoming: A Preliminary Review
By James B. Johnson and John P. Hewlett
November, 2008--USDA/AMS Livestock Mandatory Reporting reports are used by the LRP-Lamb plan of insurance. ASI is pleased to provide the following information to help explain these reports. This information was developed in conjunction with the AMS Market News Branch and the Livestock Marketing Information Center.
LRP-Lamb/MPR Definitions and Examples
LRP-Lamb Historical Documents:
RMA LRP-Lamb Release Memorandum - July 2007
FCIC Final Resolution - September 28, 2006